Google calls its HR department People Operations, though most people in the firm shorten it to POPS. The group is headed by Laszlo Bock, a trim, soft-spoken 40-year-old who came to Google six years ago. Bock says that when POPS looked into Google’s woman problem, it found it was really a new mother problem: Women who had recently given birth were leaving at twice Google’s average departure rate. At the time, Google offered an industry-standard maternity leave plan. After a woman gave birth, she got 12 weeks of paid time off. For all other new parents in its California offices, but not for its workers outside the state, the company offered seven paid weeks of leave.
So in 2007, Bock changed the plan. New mothers would now get five months off at full pay and full benefits, and they were allowed to split up that time however they wished, including taking some of that time off just before their due date. If she likes, a new mother can take a couple months off after birth, return part time for a while, and then take the balance of her time off when her baby is older. Plus, Google began offering the seven weeks of new-parent leave to all its workers around the world.
Google’s lavish maternity and paternity leave plans probably don’t surprise you. The company’s swank perks—free gourmet food, on-site laundry, Wi-Fi commuting shuttles—are legendary in the corporate world, and they’ve driven a culture of ever-increasing luxuries for tech workers. This week, for the fourth consecutive year, Google was named the best company to work for by Fortune magazine; Microsoft was No. 75, while Apple, Amazon, and Facebook didn’t even make the list.
At times Google’s largesse can sound excessive—noble but wasteful from a bottom-line perspective. In August, for example, Forbes disclosed one previously unannounced Google perk—when an employee dies, the company pays his spouse or domestic partner half of his salary for a decade. Yet it would be a mistake to conclude that Google doles out such perks just to be nice. POPS rigorously monitors a slew of data about how employees respond to benefits, and it rarely throws money away. The five-month maternity leave plan, for instance, was a winner for the company. After it went into place, Google’s attrition rate for new mothers dropped down to the average rate for the rest of the firm. “A 50 percent reduction—it was enormous!” Bock says. What’s more, happiness—as measured by Googlegeist, a lengthy annual survey of employees—rose as well. Best of all for the company, the new leave policy was cost-effective. Bock says that if you factor in the savings in recruitment costs, granting mothers five months of leave doesn’t cost Google any more money.
from Stowe Boyd http://stoweboyd.com/post/126445795032
